Tourism, a multidimensional phenomenon, is a highly developed private good that has both a direct and indirect impact on many sectors of the economy, while in a national hospitality economy almost all branches of the production process are involved. During the financial crisis, tourism, a sector with strong investment interest, helped to mitigate the effects of the recession and unemployment, which was reflected in positive growth rates. However, it is a very fragile and unstable sector that is influenced by factors beyond the control of those involved in the tourism process. Numerous crises have affected the development of Greek tourism in the short term without, however, jeopardizing its continuous development. A health crisis, the SARS-CoV-2 virus, an unprecedented situation of absolute uncertainty, caused a large number of human casualties, paralyzed the tourism process and led to a global and unimaginable lockdown, while the potential of the phenomenon aroused strong feelings in society for a prolonged period of time. The tourism industry, which is most directly affected by the pandemic, had already expressed concerns about the sustainability of the existing tourism model, as the new conditions required a review of the traditional and now controversial way of developing tourism. The pandemic represents a major challenge, but also an opportunity to revise Greek tourism policy, which is now called upon to pay attention to reinforcing the trends towards sustainability and digital transformation. Through primary and secondary research, this paper attempts to shed light on the dynamics of the tourism phenomenon in Greece in the pre-Covid-19 period and its contribution to the Greek economy, as well as to highlight the impact of the pandemic on the domestic tourism industry, while exploring the possibility of a sustainable recovery of Greek tourism.